It’s time to make some changes to this outperforming model
Every time I reviewed my Income Investor High-Yield Portfolio in recent years, I’ve noted the negative impact of rising interest rates. Thankfully, that phase appears to be over. Interest rates have stabilized and are poised to drop later this year. The result has been a strong rebound for most of our high-yield stocks.
Here is a review of the securities we own and how they have performed in the time since our last review in September. Results are to March 22.). The stock is up $1.67 from the last review. The quarterly dividend was increased in February to 91.5 cents. The stock yields 7.6 per cent at the new rate.). Stable interest rates boosted the stock, which gained $6.41 in the latest six-month period. We received two dividend payments that totaled $1.335. At the current price, the dividend yield is 5.
The table below shows what the portfolio looked like on March 22. The weighting is the percentage of the market value of the security in relation to the total market value of the portfolio. The gain/loss shows the performance of the security since it was added to the portfolio. Sales commissions and exchange rates are not considered.The portfolio has a total value of $64,949.84 and is up 9.2 per cent since the last review. We can thank the pause in rate hikes for this result.
We will also sell our position in Brookfield Energy Partners for $3,562.24, including retained earnings. That gives us a total of $6,790.69 to reinvest.), a conglomerate with interests in life insurance , asset management, and banking. The stock is trading at $37.98 and pays a quarterly dividend of 52.5 cents to yield 5.5 per cent. The company has a long history of raising dividends.
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